Best NRI Investment Options India 2026: Mutual Funds, FD, Stocks, Real Estate

Q: Sources and Further Reading

- PolicyBazaar: NRE FD Interest Rates February 2026 - IndMoney: NRI Investment Guide 2026 — Mutual Funds and Stocks - Business Standard: Budget 2026 — NRIs can invest up to 10% in Indian equities - ClearTax: DTAA Benefits for NRIs - SEBI Investor Education: NRI Investments in Indian Securities - GoINRI: NPS for NRIs - GetBelong: Sovereign Gold Bonds for NRIs - Finnovate: NRI Taxation India Explained - CompareRemit: Portfolio Investment Scheme Guide 2026

My cousin called me two years ago from Houston, frustrated. He'd been wiring money to India for years — savings, bonuses, a chunk of his RSU vest — and it was all sitting in an NRO savings account earning maybe 3% a year. He'd bought a flat in Bengaluru that was appreciating, sure, but he had no idea what else he could do with the rupees sitting idle.

"Is there anything better?" he asked.

That question unlocked a three-hour conversation that changed how he manages his India portfolio. Today that same money is split across NRE fixed deposits earning over 7%, a couple of equity mutual funds via SIP, and some direct stocks through a PIS account. He's not some finance wizard. He just finally got the full picture.

That's what this post is. The full picture — for NRIs who want to make their India money actually work in 2026.

The NRI Money Dilemma: You Earn in Dollars, India Beckons

Here's the situation most NRIs are in: you're earning in a hard currency — USD, GBP, AED, AUD — and you have deep emotional and financial ties to India. Maybe you send money back for family expenses. Maybe you want to build a retirement corpus in India. Maybe you just feel like Indian growth is real and you want a piece of it.

And honestly? You're not wrong. India's GDP has been growing at over 7% annually. Equity markets have delivered stellar long-term returns. Real estate in tier-1 and even tier-2 cities has been on a tear.

But here's the thing — most NRIs don't invest strategically in India. They park money in NRO savings. They buy a flat because it's "tangible." And they leave a lot of returns on the table because the system feels complicated and nobody explained it clearly.

The complexity is real, I won't pretend otherwise. But it's manageable once you know the rules. Let's go through everything.

Step One: Get Your Accounts Right — NRE vs NRO vs FCNR

Before you invest a single rupee in anything, you need to understand which account your money should live in. This isn't just paperwork — it has massive tax and repatriation consequences.

NRE Account (Non-Resident External)

This is your primary account if you're bringing foreign income into India. Key facts:

Funded with money earned outside India (your salary, savings in the US, UK, UAE, etc.)
Interest earned is completely tax-free in India
Fully repatriable — you can move the money back abroad at any time, no questions asked
Rupee-denominated (exchange rate risk applies when you convert back)

This is the account you want for most of your India investments. NRE FDs, mutual fund investments, stock market investments — route it all through NRE when possible.

NRO Account (Non-Resident Ordinary)

This is your account for Indian income — rent from a property, dividends, pension, agricultural income, or any other money you earn inside India.

Interest is taxable in India (TDS at 30% for NRIs, unless reduced under DTAA)
Repatriation is capped at USD 1 million per financial year (after taxes)
You can't freely move all of this money abroad without documentation

Many NRIs have both. The mistake is treating them interchangeably. They're not.

FCNR Account (Foreign Currency Non-Resident)

FCNR accounts let you hold deposits in foreign currency — USD, GBP, EUR, CAD, AUD, JPY. No rupee conversion until you actually need it.

No currency risk on the principal
Interest is tax-free in India
Fully repatriable
Usually offered as fixed deposits with tenures from 1 to 5 years
Interest rates vary by currency (USD FCNR FDs are typically lower than NRE FDs)

FCNR makes sense if you're nervous about INR depreciation and want to park money in India but get it back in the same currency you put in.

Bottom line: NRE for foreign income deployed in India. NRO for Indian income. FCNR if you want currency protection.

NRE Fixed Deposits: The Boring Option That Pays Like Crazy

I'll be straight with you: NRE fixed deposits are genuinely one of the best deals for NRIs right now. And most people sleep on them.

Here's why they're so good:

Tax-free interest in India. The interest you earn on an NRE FD is completely exempt from Indian income tax. Zero. Nothing.
Decent rates. As of early 2026, major banks are offering:
- HDFC Bank NRE FD: 6.00% to 7.25% p.a.
- ICICI Bank NRE FD: 6.60% to 7.00% p.a.
- SBI NRE FD: 6.50% to 7.00% p.a. (for deposits under Rs. 2 crore)
- Some smaller private banks and small finance banks are going higher, occasionally touching 8%+
Fully repatriable. Both principal and interest can come back to your overseas account whenever you want.
DICGC insurance. Deposits up to Rs. 5 lakh are insured by the Deposit Insurance and Credit Guarantee Corporation — so there's a safety net for smaller amounts.

Now, I know what you're thinking — "but if I convert dollars to rupees to put in an FD, and the rupee depreciates, don't I lose on the exchange rate?" Yes, that's the key risk. The INR has historically depreciated against the USD by roughly 3-4% annually. So if your NRE FD gives you 7%, and the rupee depreciates 4% against the dollar, your real dollar return is closer to 3%.

But here's the thing — that's still competitive with many US savings accounts, and you're building a rupee corpus in India that can be used locally (for retirement, family, property). If your plan is to eventually spend that money in India, the currency depreciation argument is less relevant.

And honestly? If rupee depreciation concerns you, look at FCNR deposits instead. You get currency protection, reasonable rates, and the same tax-free status.

Who should go heavy on NRE FDs: Conservative investors, NRIs planning to retire in India, anyone who needs capital preservation with a guaranteed return.

NRI Mutual Funds: Where the Real Wealth Gets Built

Fixed deposits are safe. Mutual funds are where you actually grow wealth over time.

NRIs can invest in Indian mutual funds — equity, debt, or hybrid — through their NRE or NRO accounts. The regulatory framework under FEMA permits this as a capital account transaction, and SEBI ensures AMCs maintain transparency.

The KYC Process (I Know, the Paperwork Is Annoying. But It's a One-Time Thing.)

Before you invest in any mutual fund, you need to complete KYC. Here's what that involves:

PAN Card — mandatory, get this sorted first if you don't have it
Aadhaar (if available) or passport copy
Proof of overseas address — utility bill, bank statement from your foreign bank
NRE/NRO bank account details
FATCA/CRS Declaration — this is the one that trips up US and Canada-based NRIs

The FATCA declaration is about confirming your tax residency for global reporting purposes. US-based NRIs face extra scrutiny here because of FATCA rules between the US and India. And here's the unfortunate truth: many Indian AMCs (mutual fund companies) simply don't onboard US and Canada-based NRIs because of the compliance burden.

The ones that do include Quantum Mutual Fund, PPFAS Mutual Fund, Mirae Asset, and a handful of others. If you're in the US, check each AMC's current policy — it changes.

For NRIs in the UAE, UK, Singapore, Australia, and most other countries, you'll have far fewer restrictions.

How to Actually Invest

Once KYC is done, you can invest:

Directly through AMC websites — straightforward but you need to manage each AMC separately
Through platforms like Kuvera, Zerodha Coin, or INDmoney — consolidated dashboard, easier to manage SIPs
Through NRI-focused advisory platforms — good if you want guidance

You can do SIP (Systematic Investment Plan) from your NRE/NRO account via auto-debit mandates.

Which Funds to Consider?

This one surprised me when I looked at long-term data. Indian equity funds — especially large-cap and flexi-cap — have delivered strong returns over 10+ year periods. Some worth looking at:

Large-cap index funds — Nifty 50 or Sensex index funds, low cost, tracks India's top companies
Flexi-cap funds — fund manager has flexibility across market caps, good for long-term wealth creation
Debt funds — if you want stable income from India, short-duration debt funds work well through NRO
International funds — yes, Indian mutual funds offer international ETFs, but NRIs have specific restrictions on these, check before investing

Tax on mutual funds for NRIs:

Equity funds (held over 1 year): Long-term capital gains taxed at 12.5% in India (above Rs. 1.25 lakh)
Equity funds (held under 1 year): Short-term capital gains at 20%
Debt funds: Taxed as per income slab (same as FD interest)
TDS is deducted at source for NRIs before redemption — you can claim a refund if excess TDS is deducted

My unpopular opinion: Most NRIs spend more time picking individual stocks in India than building a disciplined SIP in a good index fund. The index fund will beat most stock picks over 10 years. Start there.

NRI Stock Market Investing: The PIS Account Setup

Want to invest directly in Indian stocks? You can — but it requires a bit of setup through what's called the Portfolio Investment Scheme (PIS), regulated by RBI.

What Is PIS?

The Portfolio Investment Scheme is an RBI permission that allows NRIs and OCIs to buy and sell shares and convertible debentures of Indian companies on a recognized stock exchange (BSE or NSE).

Good news from Budget 2026: the individual NRI shareholding limit in any listed Indian company was doubled from 5% to 10% of paid-up capital. The combined ceiling for all NRIs together was raised from 10% to 24%. This opens up significantly more room for NRI equity investors.

How to Set It Up

Open an NRE-PIS bank account with a bank designated by RBI for PIS services — HDFC, ICICI, SBI, Axis, Kotak all offer this
Get your PIS permission letter from the bank — this is the official RBI authorization
Open a Demat and trading account with a SEBI-registered broker, linked to your PIS bank account
Complete KYC with the broker — PAN, passport, overseas address proof

Once set up, all your stock purchases are routed through the PIS bank account. Every transaction is reported to RBI by the bank. This keeps the system compliant.

Rules to Know Before You Trade

No intraday trading. Period. NRIs can only take delivery-based positions. Buy today, you hold the shares — you can't sell the same day.
No short selling.
Each share purchase/sale must be reported to the PIS bank — in practice, the broker and bank coordinate this automatically
Only one PIS bank account allowed per NRI — you can have multiple brokers but all linked to the same PIS account

What About Non-PIS Investing?

You've probably heard of non-PIS accounts for mutual funds and some other securities. Non-PIS accounts can be used for certain transactions, but for direct equity investments on exchanges, PIS is the required route for NRIs.

Taxation on Stocks

STCG (under 1 year): 20%
LTCG (over 1 year): 12.5% (above Rs. 1.25 lakh exemption)
TDS is deducted automatically on gains
You can offset DTAA benefits when filing — more on that below

Trust me on this: The PIS setup takes 2-4 weeks to complete. Start the process before you're in a hurry to invest.

National Pension System (NPS) for NRIs: Building a Retirement Corpus

The NPS is a government-backed retirement savings scheme and NRIs between 18 and 60 years of age can participate. It's a solid option if you're thinking long-term about retirement in India.

How It Works for NRIs

You can open a Tier-1 NPS account — this is the primary retirement account
Contributions can be made from your NRE or NRO account
Money is invested across equity (E), corporate bonds (C), and government securities (G) — you choose the mix
At maturity (age 60), 60% of the corpus can be withdrawn tax-free. The remaining 40% must be used to buy an annuity (monthly pension)

Tax Benefits

Contributions up to Rs. 1.5 lakh qualify for deduction under Section 80C
Additional Rs. 50,000 deduction available under Section 80CCD(1B)
For NRIs, these deductions apply if you have taxable income in India

Important Restrictions

Tier-2 accounts are not available to NRIs — only resident Indians can use the flexible withdrawal Tier-2 structure
OCI cardholders are not eligible — NPS is specifically for Indian passport holders who are NRI, not OCI
On maturity or on leaving India permanently, the account must be closed

Honest assessment: NPS makes most sense for NRIs who plan to return to India before 60, or who have significant taxable Indian income and want the Section 80C/80CCD deductions. If you're likely to stay abroad past 60, the annuity requirement makes it less flexible.

Sovereign Gold Bonds (SGBs): The Complicated Answer

A lot of NRIs ask about Sovereign Gold Bonds. Here's the honest, up-to-date answer as of 2026:

NRIs cannot buy new SGBs. RBI and FEMA guidelines don't permit NRIs to invest in new SGB tranches. And there's another wrinkle — the government itself discontinued the SGB scheme in Budget 2025. Finance Minister Nirmala Sitharaman confirmed no new tranches would be issued going forward.

If you already hold SGBs (purchased when you were a resident Indian), you can continue holding them to maturity. When you became an NRI, your existing SGBs remain valid — you can hold and redeem them, subject to applicable tax rules.

For gold exposure as an NRI in 2026, consider:

Gold ETFs — tradeable on NSE/BSE, can be purchased through your PIS account
Gold Mutual Funds — invest in gold ETFs, no demat account needed
Physical gold — you can bring gold into India or purchase it, subject to customs rules

Gold ETFs give you the price of gold without the hassle of storage, and they're completely accessible to NRIs through the existing stock market setup.

PPF: What You Can and Cannot Do

Public Provident Fund is one of India's most beloved savings instruments — 7.1% interest, government-backed, completely tax-free (EEE status: exempt on investment, interest, and maturity).

But here's the hard truth for NRIs: you cannot open a new PPF account as an NRI. FEMA rules and the PPF scheme don't permit it.

However, if you opened a PPF account before becoming an NRI, you can continue contributing to it until it matures. The original 15-year tenure applies. You cannot extend it beyond maturity once you're an NRI.

What this means practically:

If you have an existing PPF, keep contributing — it's still one of the best risk-free investments in India
Fund it through your NRO account
Once it matures, you close it, get the tax-free corpus, and move on

If you don't have an existing PPF, this option is off the table. Look at NRE FDs or NPS as the fixed-income alternatives.

Real Estate: The Classic NRI Investment

Real estate deserves a mention because it remains one of the most popular investment choices for NRIs — and for good reason. Indian property has delivered strong long-term appreciation, especially in metros and emerging cities.

NRIs and OCIs can freely purchase residential and commercial real estate in India. You don't need RBI approval for most purchases. Agricultural land and plantation property are restricted — NRIs cannot purchase those without special permission.

We've covered NRI real estate in depth in our NRI Real Estate Investment Guide — including RERA protections, rental income taxation, and how to buy from abroad. Check that out for the full breakdown.

Quick note on real estate in 2026: The market has matured significantly. Tier-1 cities like Mumbai, Bengaluru, and Delhi NCR have seen price appreciation, but rental yields are still relatively low (2-3%). Tier-2 cities — Pune, Hyderabad, Ahmedabad — offer a better balance of capital appreciation and yield.

Tax Implications in India: What Gets Taxed and How

Understanding Indian tax rules for NRIs isn't optional — it's critical. Here's the simplified version:

What Income Is Taxable for NRIs in India?

Only income earned or received in India is taxable for NRIs. Your foreign salary, US dividends, UK rental income — none of that is taxable in India. But:

Interest on NRO FDs: Taxable (TDS at 30%)
Interest on NRE FDs: Tax-free
Capital gains from selling Indian stocks or mutual funds: Taxable (STCG/LTCG rates above)
Rental income from Indian property: Taxable (after standard deduction of 30%)
Dividends from Indian companies: Taxable at applicable rates, TDS deducted

TDS for NRIs

Banks and companies deduct TDS (Tax Deducted at Source) from NRI income at higher rates than for residents. The standard NRI TDS rates:

NRO FD interest: 30%
Short-term capital gains on equity: 20%
Long-term capital gains on equity: 12.5%
Rental income: 30%

If excess TDS is deducted (more than your actual tax liability), you can file an Indian income tax return and claim a refund.

The DTAA Advantage: Don't Pay Taxes Twice

India has signed Double Tax Avoidance Agreements (DTAAs) with over 90 countries, including the US, UK, UAE, Canada, Australia, Singapore, and Germany.

Here's what DTAA does for you:

1. Reduced TDS Rates Under DTAA, certain income types are taxed at lower rates. For example, under the India-US DTAA, FD interest may be taxed at a lower rate than the standard 30% TDS. To claim this, you need to submit a Tax Residency Certificate (TRC) from your country of residence and Form 10F to the bank or AMC before TDS deduction.

2. Foreign Tax Credit If you've already paid tax in India on some income, your country of residence typically gives you a credit for that — so you're not taxed twice on the same amount. In the US, you'd file Form 1116 to claim this credit. In the UK, it goes on your Self Assessment return.

3. UAE Advantage If you're an NRI based in the UAE, this is good news: the UAE has no personal income tax. So you won't face double taxation on most Indian investment income — you just pay the Indian tax and that's it.

Documents needed to claim DTAA benefits:

Tax Residency Certificate (TRC) from your country of residence
Form 10F (self-declaration with personal details)
PAN card
Submit to the bank/broker/AMC before they deduct TDS

This one step — submitting your TRC — can save you significant money every year. Don't skip it.

Tax Implications in Your Country of Residence

This is the part most people ignore and shouldn't.

If you're living in the US, UK, Canada, Australia, or most developed countries — you are likely a tax resident of that country. And as a tax resident, you're typically required to declare your global income — including income from India — in your local tax return.

For US-Based NRIs

The IRS taxes US residents (including green card holders and citizens) on worldwide income. That means:

NRE FD interest that's tax-free in India? Taxable in the US.
Capital gains from Indian stocks? Declare it on Schedule D.
Rental income from Indian property? Goes on Schedule E.

Additionally, if your foreign bank accounts (NRE/NRO/FCNR) held more than USD 10,000 at any point during the year, you must file an FBAR (FinCEN 114) annually. Miss this, and penalties are severe — up to USD 10,000 per violation for non-willful violations.

If your total foreign financial assets exceed USD 50,000 (single) or USD 100,000 (married), you also need to file Form 8938 (FATCA) with your tax return.

The India-US DTAA helps you claim credits for taxes paid in India, reducing your US tax bill. But you still have to report everything.

For UK-Based NRIs

UK residents are taxed on worldwide income. Your Indian investment income needs to be declared in your Self Assessment return. The India-UK DTAA lets you claim relief for taxes paid in India.

For UAE-Based NRIs

Lucky you — the UAE has no personal income tax. You pay Indian taxes where applicable, and there's no UAE tax to worry about. Just make sure your Indian documentation is clean.

For Canada-Based NRIs

Similar to the US — Canada taxes residents on worldwide income. The India-Canada DTAA provides relief. Many Indian AMCs actually restrict investments from Canadian residents (similar to US-based NRIs) due to compliance burdens.

My strong advice: Work with a tax professional who understands both Indian and your country-of-residence tax laws. The cost of good advice is way less than the cost of getting this wrong.

Best Banks for NRI Investments in India

Not all banks are created equal when it comes to NRI services. Here's a practical rundown:

HDFC Bank

Consistently the top-rated private bank for NRI services. Offers:

NRE, NRO, and FCNR accounts
Competitive NRE FD rates
NRI PIS account for stock market investing
Good international wire transfer rates
Dedicated NRI relationship managers (for higher account balances)
Solid mobile banking app that works from overseas

Best for: NRIs who want a full-service private bank with strong digital infrastructure.

ICICI Bank

Strong competitor to HDFC, with excellent digital banking. Offers:

NRE/NRO/FCNR accounts
ICICI Direct for stock trading (PIS-linked)
Money2India for international transfers (one of the best rates available)
NRI iMobile app — actually quite good
ICICI Wealth Management for HNI NRIs

Best for: NRIs who want strong digital banking plus integrated investment platform.

SBI (State Bank of India)

The government-owned giant. Reliable, widespread branch network in India, and has branches/representative offices in many countries.

Typically offers slightly lower rates than private banks
Very useful if your family members in India are SBI customers
NRI services are solid but the digital experience lags behind HDFC and ICICI
SBI has a strong trust factor — many older NRIs prefer it

Best for: NRIs whose families are in smaller cities where SBI has better coverage.

Axis Bank and Kotak Mahindra Bank

Both have been expanding NRI services aggressively. Axis Bank's NRI Portal is well-designed. Kotak offers premium relationship banking for NRIs with larger portfolios. Worth comparing rates before you commit.

Small Finance Banks

Some small finance banks offer NRE FD rates upwards of 8-8.5% — higher than the big four. Examples include ESAF Small Finance Bank, Utkarsh Small Finance Bank, and others. The deposits are DICGC insured up to Rs. 5 lakh, so they're safe for amounts within that limit.

My recommendation: For primary NRI banking, go with HDFC or ICICI. For chasing higher FD rates on a portion of your savings, small finance banks are worth exploring — just stay within the Rs. 5 lakh DICGC insurance limit per bank.

Repatriation: Bringing Your Money Back

One of the biggest concerns NRIs have: "If I invest in India, can I get the money out?"

The answer depends on which account the money is in.

NRE Account: Complete Freedom

Money in your NRE account — including NRE FD interest and principal — is fully and freely repatriable. You can move it abroad at any time, in any amount, without RBI permission. This is by design. NRE accounts are meant to hold foreign-earned money invested in India, and you should always be able to take it back.

NRO Account: USD 1 Million Cap

Money in your NRO account (Indian income — rent, salary, dividends, etc.) can be repatriated, but:

Cap of USD 1 million per financial year (April to March)
Tax must be paid on the income first (TDS is usually deducted, but file ITR to confirm)
Documentation required: Form 15CA (self-declaration) and Form 15CB (from a Chartered Accountant certifying taxes are paid)
For amounts over USD 1 million, you need RBI permission — doable but takes time

Capital Gains from Stocks and Mutual Funds

Capital gains from NRE-based investments are repatriable (fully). Capital gains from NRO-based investments are subject to the USD 1 million annual limit.

Practical Tips for Repatriation

Keep NRE and NRO funds separate — mixing them creates compliance headaches
File Indian ITR if TDS was deducted — get your refund before you try to repatriate
Have a CA in India who can issue Form 15CB quickly when you need it
Document everything — bank statements, sale deeds, tax receipts — India's paper trail requirements are real

Putting It All Together: A Practical NRI Investment Strategy

Let me give you a framework depending on where you are in life:

If You're 30-40 and Building Wealth

NRE FD: 20-30% of India allocation — your stable base
Equity Mutual Funds via SIP: 50-60% — large-cap index + flexi-cap fund, long-term wealth
Direct Stocks via PIS: 10-20% if you enjoy research, otherwise skip
NPS: Consider if you plan to retire in India and have Indian taxable income

If You're 40-55 and Consolidating

NRE FD: 40-50% — capital protection increases in priority
Balanced/Hybrid Mutual Funds: 30-40% — equity with lower volatility
Real Estate: If you already have a property, great. Don't buy just for investment unless returns stack up.
NPS: If under 55 and Indian passport holder, consider maxing this for retirement corpus + tax benefits

If You're 55+ and Near Retirement (in India)

NRE FDs: 50-60% — safety and tax-free income
Debt Mutual Funds: 20-30% — for slightly better returns than FD with some liquidity
Annuity or Pension Products: Look at insurance company annuities for guaranteed income post-retirement
NPS Maturity: If you have an existing NPS account, plan the 60% withdrawal and annuity purchase

Frequently Asked Questions

Can NRIs invest in Indian mutual funds from any country?

Most countries, yes. The exceptions are US and Canada — NRIs based there face additional compliance requirements (FATCA/SEC rules), and many Indian AMCs don't onboard them. Some AMCs do accept US/Canada-based NRIs — Quantum Mutual Fund and PPFAS are among the more NRI-friendly ones. Always check the AMC's current policy.

Do NRIs need to pay capital gains tax in India?

Yes. Capital gains from Indian stocks and mutual funds are taxable in India regardless of NRI status. STCG at 20% for equity held under 1 year, LTCG at 12.5% (above Rs. 1.25 lakh) for equity held over 1 year. TDS is deducted at source by the broker/AMC.

Can I invest in Indian IPOs as an NRI?

Yes. NRIs can apply for IPOs under the NRI category, which has a separate allocation. You need a Demat account linked to your NRE/NRO account. The application amount is deducted from your bank account at the time of application.

Is the interest on NRE FDs taxable in the US?

Yes. Even though NRE FD interest is tax-free in India, it is taxable income in the US. You must declare it on your US federal tax return. You can claim a foreign tax credit for any Indian taxes paid on other income, but since NRE FD interest isn't taxed in India, there's no Indian tax to credit against the US tax.

What is the minimum investment for NPS as an NRI?

Rs. 500 per contribution, with a minimum of Rs. 1,000 per financial year to keep the account active. For Tier-1, there's also a requirement of at least one contribution per year.

Can I continue my SIP in Indian mutual funds if I become an NRI mid-year?

You need to update your KYC status with the AMC (change from resident to NRI), provide NRE/NRO bank account details, and complete FATCA declaration. Once updated, your SIP can continue. Don't ignore this — investing as a resident when you're actually an NRI creates compliance issues.

How long does PIS account setup take?

Typically 2-4 weeks. The bank needs to get RBI permission for the PIS account, which takes time. Plan ahead before you want to start trading.

Can NRIs invest in RBI Floating Rate Savings Bonds?

No. RBI Floating Rate Savings Bonds are available only to resident Indians. NRIs cannot invest in these bonds.

What happens to my NRE FD if I return to India permanently?

When you return to India and become a resident, your NRE account must be converted to a regular resident savings account (or Resident Foreign Currency account if applicable). The FD can continue to maturity at the contracted rate, but new deposits won't get NRE tax-free status.

Do I need a PAN card to invest in India as an NRI?

Yes. PAN is mandatory for almost all financial transactions in India — opening bank accounts, investing in mutual funds, buying stocks, filing tax returns. If you don't have one, apply on the NSDL or UTIITSL website. It's relatively straightforward from abroad.

The Bottom Line

India's investment landscape for NRIs in 2026 is genuinely exciting. You have options across the risk-return spectrum — from tax-free NRE FDs earning 7%+ to equity mutual funds building long-term wealth, to direct stock investing through a PIS account.

The system has paperwork. Yes. But it's manageable, and the one-time setup pays off for years.

What I'd tell my cousin if he were starting fresh today:

Open NRE and NRO accounts with HDFC or ICICI — today, not "someday"
Park your emergency fund equivalent in NRE FDs — the tax-free interest is a gift
Start a SIP in an index fund — even Rs. 10,000/month compounded over 10-15 years is serious money
If you enjoy markets, set up a PIS account and do some direct equity — but keep this a smaller portion
Get a CA who understands NRI taxation in both India and your country of residence

That's leaving money on the table. Don't do it.

The best investment is the one you actually make — not the one you meant to make after "figuring out the paperwork."

Disclaimer: This post is for informational purposes only and does not constitute financial or tax advice. NRI investment rules, tax laws, and interest rates change frequently. Consult a qualified financial advisor and tax professional familiar with both Indian and your country-of-residence regulations before making investment decisions.